oliver kim invests $5,000 in an investment account earning 8% interest compounding annually. how much will…

oliver kim invests $5,000 in an investment account earning 8% interest compounding annually. how much will he have in his account in four years? the future value of $1 at 8% for four years is 1.36049 per table 1 (future value of $1). round to the nearest dollar.\na. $5,412\nb. $6,242\nc. $5,937\nd. $6,802

oliver kim invests $5,000 in an investment account earning 8% interest compounding annually. how much will he have in his account in four years? the future value of $1 at 8% for four years is 1.36049 per table 1 (future value of $1). round to the nearest dollar.\na. $5,412\nb. $6,242\nc. $5,937\nd. $6,802

Answer

Explanation:

Step1: Identify the formula

The formula for future - value is $FV = PV\times FVIF$, where $FV$ is the future value, $PV$ is the present value, and $FVIF$ is the future - value interest factor.

Step2: Substitute the given values

We are given that $PV=$5000$, and the future - value interest factor ($FVIF$) of $$1$ at $8%$ for 4 years is $1.36049$. $FV = 5000\times1.36049$

Step3: Calculate the future value

$FV=5000\times1.36049 = 6802.45$

Step4: Round to the nearest dollar

Rounding $6802.45$ to the nearest dollar gives $$6802$.

Answer:

d. $$6,802$